The economic news is not getting any better as we near the halfway point of the year. Unemployment is up, gas and food prices are up. But businesses' hiring and spending plans are down and job creation is in the minus column. That's without even talking about housing. There isn't much way 2008 can recover.

But what happens if we don't shake out of this malaise for a long time, maybe even a decade? With stagnant growth and lots of inflation, we could be looking at a return to the 1970s scourge of stagflation. That is a huge problem in many respects, but especially painful for retirement savers who could find their portfolios stagnating and their contributions eaten away. If you were counting on your nest egg to double to get you to your retirement "number" and it flat lines, life is going to be tough.

There are no guarantees in investing, but your best chance to whip stagflation now could be a Lazy Portfolio -- a set of no-load, low-expense index funds that you can buy and hold for the long term. As Paul B. Farrell points out, these portfolios have performed well in bull and bear markets and are likely to keep you moving forward even if the market goes only sideways.

The problem with Lazy Portfolios? They are simple to create and easy to understand, so Wall Street doesn't make money on them. Just you.

-- Steve Kerch, assistant managing editor/personal finance

INVESTING

'Lazy Portfolios' for stagflation 2008-2018!

Stagflation till 2018? I can hear you screaming: "Ten years of no growth? Plus inflation? Plus high volatility in a narrow trading range?" You're crazy! See Paul B. Farrell.

Stagflation is back, but the outlook is grimmer this time

Which is worse, wages that keep up with inflation or wages that don't? Nowadays, a lot of comparisons are being made to the 1970s. This is because the U.S. economy is once again in the throes of stagflation. See Irwin Kellner.

Islamic funds enjoying strong investment gains

More investors should learn from Islamic investment principles, which have quietly and responsibly guided two mutual funds to dramatic investment returns. See Bill Donoghue.

Contrarians will be closely watching sentiment in next few days

The Dow Jones Industrial Average at the end of Monday's trading was just 540 points above where it closed on March 10, which at least so far marks the closing low of the correction that began last fall. This represents a big setback for the bulls, since as recently as a month ago the Dow was more than 1,300 points above its March low. And the market now seems intent on retesting those March lows. Will the market pass that test? See Mark Hulbert.

A bank to buy and a bank to sell

Brent Wilsey, of Wilsey Asset Management in San Diego, says that investors should "invest by the numbers," looking at the specifics of the balance sheet, financial statement and at a company's earnings picture to determine if it's a buy rather than relying on market trends. He noted that big industry or macroeconomic problems eventually become evident in the numbers. See Your Money with Chuck Jaffe.

HEALTH

Raw tomatoes vanish from shelves, menus due to illness outbreak

Before you dip that chip into fresh salsa, bite into a sandwich or dive into a restaurant entree with red sauce, you might want to think twice. The U.S. government this weekend warned of a widening outbreak of the food-borne illness salmonella that's believed to be linked to certain tomato varieties. As a result, the list of retailers and restaurants pulling three types of tomatoes from their shelves and menus is growing. See Health Matters Blog.

The war on obesity targets toddlers

When Diane Matlack took her daughter to a routine check-up two years ago, the pediatrician delivered surprising news: Melody, who had just turned 3, was overweight. See full story.

How surgery may affect mental acuity

Aides to Bill Clinton last week vehemently denied speculation that the former president's intemperate remarks on the campaign trail were due to mild cognitive damage from his quadruple-bypass surgery in 2004. But the condition dubbed "pump head" or "bypass brain" has long been recognized by doctors, even if they seldom warn patients about it. See full story.

Microsoft, Kaiser try health-records sharing

Microsoft Corp. and health-care company Kaiser Permanente plan to launch a pilot program to exchange patient information, the latest in a series of efforts to allow people to better maintain control over their health records. See full story.

CHARITABLE GIVING

Making your charitable donations count

If you've decided to make a donation to a charity but aren't sure which one yet there are a number of factors you'll want to consider. One big question that you may have is "where is your money going?" Consider these tips from Carlos Lowenberg Jr., president of Lowenberg Wealth Management in Austin, Texas, to help you choose the right charity: See Marshall Loeb's Daily Money Tip.

REAL ESTATE

Seller help for down payments under fire

Losses from home loans that depend on seller-funded down-payment assistance are hurting the Federal Housing Administration, its chief said Monday, and he called on lawmakers to address these risks. See full story.

RETIREMENT

New debit card for Social Security payments

Those without traditional bank accounts are getting a safer way to receive Social Security payments and other federal benefits. See full story.

THE JOB MARKET

Manpower survey finds employers' hiring plans shifting downward again

Mirroring other signs of an increasingly troubled job market, the portion of employers who said they plan to hire in the upcoming third quarter ticked lower in the latest Manpower Employment Outlook Survey. See full story.

Mergers & apprehensions: Navigating coming change

Learning that your company is merging with another -- or being bought -- is one of the most anxiety-provoking events in a career. Two companies might work better as one, but job cuts often follow such a marriage. See full story.

TRAVEL

With travel costs steep, consider these four tips to enjoy staying at home

When I've written about summer travel in years past, I've recommended spas and inexpensive vacations in French-speaking locales. Those are still good ideas, but this year, given the state of the economy and steep gas prices, it makes more sense to stay close to home. See Jennifer Openshaw.

Flying stinks -- especially for the airlines

You can fly between New York and Los Angeles for as little as $370 round-trip, not including taxes and government fees, on JetBlue, and $20 more on American. And out of that, how much will the airline spend on fuel? See The Middle Seat.

Cutbacks in business travel

Susan Gurley with the Association of Corporate Travel Executives tells Nancy Lyons that flight reductions and increased costs are sending travel managers looking for new alternatives. Eighty-two percent of those polled by ACTE reported studying video-teleconferencing as a travel alternative. Forty-nine percent say they're simply cutting back on travel. Listen to Audio Report.

If you're seeking better customer service from your bank, you may do a bit better with a regional financial institution than with the largest firms -- at least for now, according to a new survey. See Consumer Banking.

Hi, I'm addicted to credit cards

After years of free spending -- $200 jeans, a silver BMW and other grown-up toys -- Michael Wagner had racked up $25,000 in credit-card debt and was behind on his mortgage and car payments. Creditors called night and day. It was a "hopeless downward spiral," he says. See full story.

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